Good Governance and Trust in Village Fund

Implementing good governance is essential for strengthening public trust, particularly in the management of public funds. In Indonesia, increasing cases of village fund misuse have raised concerns about the effectiveness of governance at the village level. While previous studies have examined accountability in village fund management, limited attention has been given to its impact on public trust and the mediating role of perceived corruption. This study addresses this gap by examining accountability and community participation as key dimensions of good governance and their effects on public trust, with perceived corruption as a mediating variable. The research focuses on 27 villages in Denpasar, Bali Province. Using survey data and Partial Least Squares Structural Equation Modelling (PLS-SEM), the findings reveal contrasting effects: accountability shows a negative relationship with public trust, while community participation has a positive effect. Perceived corruption emerges as a crucial mediating factor, highlighting potentially symbolic rather than substantive governance practices.